Gaming | Genting, Melco remain in Yokohama IR race

Genting Singapore and Melco Resorts & Entertainment have qualified for the city’s Request for Proposal (RFP) to develop an integrated resort (IR), the government of Yokohama, Japan’s second-largest city, recently announced on their website.
The local gaming operator, Melco, is said to have partnered with the Japanese construction and civil engineering company Taisei Corporation for the IR bid; while Genting have allied with Japan’s Sega Sammy Holdings and Kajima Corporation.
The qualification of the two gaming operators did not come as a surprise to market observers, who saw it as a two-horse race between the two firms.
Initially, seven contenders made bids. However, in another disappointment for the Japanese city following the withdrawals of Las Vegas Sands and Wynn, Galaxy Entertainment Group (GEG) withdrew from the bid two weeks ago.
In a statement, GEG chairman Francis Lui attributed the withdrawal to the Covid-19 pandemic, noting that they have “decided to not participate at this time.”
Now, Genting Singapore and Melco Resorts & Entertainment are bidding to receive the first IR license, following Yokohama’s announcement of the IR bidding process in 2019.
The qualifiers have until June 11 to make the actual RFP submissions to the Yokohama authorities who will then decide the final winner this summer.
Meanwhile, a Japanese holding company, Sega Sammy, which was also a contender, said that it made sense to partner with a foreign company, considering the need to attract Chinese gamblers to Japan.
“In order to attract Chinese customers, it would be better to form a partnership with a foreign company, and in deepening of the analysis of Japanese customers, there is benefit for our partner to work with us,” according to the statement by Sega Sammy.
Currently casino operators remain bogged down in the RFP process. Across Japan, there are four cities that have proclaimed their intention to compete with their own IRs: Osaka, Yokohama, Wakayama and Nagasaki.
Yokohama will draft an area development plan with its selected operator to submit to the central government by April 2022.
The central government may approve IR plans for up to three locations in Japan and Yokohama will be competing against Osaka, Wakayama and Nagasaki.
Recently, the junket Suncity Group declined to compete for the development of an IR in Wakayama. The group also attributed the withdrawal to the impact of the Covid-19 pandemic.
According to reports, the departures of Galaxy, Las Vegas Sands, and Wynn from the Yokohama race could hurt the city’s chances of claiming a gaming license.
Japanese policymakers were eyeing companies that were experienced in operating high-end resorts in the Asia-Pacific region – implying that the withdrawal of the three gaming operators was a loss to the city, since the three run a total of 10 gaming properties in the SAR.